ELDERS has been thrown a market lifeline by reclusive investor Phil Mathews.

The man behind Mathews Capital Partners has sunk almost $50 million into becoming the iconic agribusiness' largest shareholder - with a 10.9 per cent bloc.

Despite investment industry warnings, Mr Mathews has shown a growing passion for agriculture.

His company is now also the largest shareholder in embattled timber business Gunns.

And his investment in Elders has further expanded his exposure to the timber industry.

Elders investor and corporate relations general manager Don Murchland said Mr Mathews started his buying spree the week the company announced its latest profit downgrade in late June.

Mr Murchland also pointed out that with the almost certain takeover of AWB-Landmark by Canada's Agrium, Elders is the last national rural and regional distribution business left standing.

"Mr Mathews has obviously seen Elders as a cheap opportunity, and one with a lot of value in the long term," Mr Murchland said.

"A lot of people are now taking a new look at agribusiness. BHP has shown that with Potash and the Chinese with PG Wrightsons," he said.

Mathews Capital Partners did not respond to requests for an interview.